A Firm's Labor Input, Total Output of Labor, and Product

question 145

Multiple Choice

A firm's labor input, total output of labor, and product price schedules are given in the table. Labor is the only variable input. What is the marginal revenue product of the fifth worker?

• A)$5
• B)$25
• C)$−7
• D)$1

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Definitions:

Product Differentiation Strategy

A marketing strategy that businesses use to distinguish their products from those of competitors, typically through unique features, performance, or quality.

Process-Oriented Layout

A layout design primarily used in manufacturing operations where machinery and equipment are organized according to the specific process or sequence of operations.

Strategic Layout Decision

Decisions related to the physical arrangement of business resources to optimize processes and efficiency.

Inventory

The quantity of goods and materials on hand, typically in a warehouse or point of sale, waiting to be sold or used in production.